An IT contract worth R23-million, awarded by the Gauteng finance department, is under investigation by the Hawks.
The contract was given to Lefatshe Technologies without going through a tender process, apparently so security would not be compromised, said the Sunday Independent.
Lefatshe had been awarded at least one other government tender, worth R65-million. This was cancelled in 2010 due to fraud and corruption allegations.
"I can confirm that we are indeed investigating cases of fraud against Lefatshe. One of the matters is going to be handed over to the National Prosecuting Authority at the end of the month for further deliberation," Hawks Captain Paul Ramaloko told the paper.
The Lefatshe contract accounted for part of the R55-million the department spent irregularly in the last financial year, according to the paper.
National Police Commissioner Riah Phiyega was a director in Lefatshe when it was awarded a R65-million contract to develop an accident reporting system for the Road Traffic Management Corporation, the Independent Online reported earlier this year. - Sapa